By Myrna M. Velasco
The management of Alsons Consolidated Resources Inc. (ACR) has approved the P1-billion capital outlay for its planned 15.1-megawatt Siguil hydropower project in Sarangani province.
The power project, costing a total of P3.7 billion, will be undertaken through its subsidiary Alsons Renewable Energy Corporation (AREC), the direct owner the project vehicle firm Siguil Hydropower Corporation.
In the Alcantara firm’s disclosure to the Philippine Stock Exchange (PSE), it indicated that “the construction of the Siguil hydro plant will commence shortly within this year upon completion of all necessary permitting and formalities.”
Should the project moves on targeted timelines, the company emphasized that the facility will be reaching commercial operations by the first half of year 2020.
Additionally, Alsons has approved a performance undertaking “to be issued to its long-time partner Toyota Tsusho Corporation (TTC) in support of the sale to the Japanese government of half of the Siguil hydro project’s carbon credits.”
This deal shall be underpinned by the Japanese government’s joint credit mechanism (JCM), being part of their strategy to pare global carbon emissions.
Under JCM, a qualified power project is typically implemented by Japan and a host country through bilateral agreements.
A project utilizing ‘clean technology’ like the Siguil hydropower venture could generate additional revenues through the sale of its carbon credits.
The Siguil hydropower project is the first renewable energy (RE) venture of the Alcantara group, after initially pursuing fossil fuel-fired power projects.
The company is also setting its sights on solar and other prospective RE ventures – primarily further build-up of capacity in hydro facilities.
Tags: Alsons Consolidated Resources Inc., Alsons Renewable Energy Corporation, power project, Sarangani province, Siguil Hydropower, Siguil hydropower project, Toyota Tsusho Corporation